The Home Depot
Home Depot is expected to report earnings of $3.08/share on $31.44 billion in revenue. Meanwhile, the so-called Whisper number is $3.15. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
Fundamentally, Home Depot’s earnings grew by +27% in Q2 2020 vs Q2 2019. Meanwhile, revenue jumped by +23% in Q2 2020 vs Q2 2019. Last year, in Q3, the company earned $2.53/share and this year they are expected to earn $3.08 which would be another healthy jump. The fact that the economy was stronger in Q3 2020 vs Q2, that bodes very well for shareholders.
A Closer Look At The Technicals:
Technically, the stock is building a new base as it pauses to digest a very strong rally from the March 2020 low. That is very bullish as the stock remains perched just below the record high.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news.